3 Reasons to Buy this Stock:
- The shares have recovered from their 2014 decline
- The recent pullback offers a good entry point for investors
- Recent efforts to boost US sales will continue to work
Summary:
Germany defeated Argentina to win the world cup in 2014, which both are best Adidas selling soccer jerseys. Unfortunately, the world cup boost was still not sufficient enough to reach their financial objectives for the year. Adidas projected their income to be in the range of $1,095M to $1,255M only to revise this to be approximately $858M.
As a result of this, Mr. Mark King, who is Adidas’ head of North America, suggests that to be successful
in the US, they have to be about US sports. His argument is that despite soccer being more popular around the world, they cannot ignore the opportunity in traditional American sports. Initiative Adidas has already taken as a result of this have been:
- To fund Arizona State University, who previously was a Nike school
- Sponsor more than 500 National Football League and Major League Baseball players
- Sign Kanye West
Many have been criticizing the company’s signing of Kanye West, speculating he won’t be able to bring the brand back and compete with Nike since he was passed by Under Armour recently. Every signature shoe Kanye West has come out with have been sold out on their opening day and some times they have even been resold for more than their initial price. As a result of tackling opportunities both within the sports world as well as the music and entertainment space, we see shares of Adidas recovering from their recent decline going into 2016.
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*Disclosure: Stocks discussed to watch are strictly the JU FIBER Club’s opinion and not a recommendation to buy or sell positions.
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